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Trading foreign currencies is a challenging and potentially
profitable opportunity for educated and experienced investors. However, before
deciding to participate in the Forex market, you should carefully consider your
investment objectives, level of experience and risk appetite. Most importantly,
do not invest money you cannot afford to lose.
There is considerable exposure to risk in any foreign exchange
transaction. Any transaction involving currencies involves risks including, but
not limited to, the potential for changing political and/or economic conditions
that may substantially affect the price or liquidity of a currency.
More over, the leveraged nature of FX trading means that any
market movement will have an equally proportional effect on your deposited
funds. This may work against you as well as for you. The possibility exists
that you could sustain a total loss of initial margin funds and be required to
deposit additional funds to maintain your position. If you fail to meet any
margin call within the time prescribed, your position will be liquidated and
you will be responsible for any resulting losses. Investors may lower their
exposure to risk by employing risk-reducing strategies such as "stop loss" or
"limit" orders.
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